EHealth CEO Sarah Kramer Fired
Calls for Health Minister’s Resignation Amidst Spending Scandal
Jun 8, 2009
The idea for eHealth first surfaced under the Harris Tories. They formed Smart Systems for Health, the idea behind which, was supposed to create electronic health records. Last fall, it was revealed that agency had spent around $650 million. It was dissolved and replaced by eHealth.
Opposition Alleges $2 Million Spending Scandal
CEO Sarah Kramer was fired after a spending scandal came to light involving consultants and her associates working for the agency. The Opposition Tories accuse Kramer, and Chairman Alan Hudson of awarding contracts totaling approximately $2 million to Liberal-friendly agencies. According to the Toronto Star the Tories have documents backing it up.
These documents indicate contracts were handed out between October of 2008 and January 2009 without competition. These include a $268 thousand to Consulting agency Anzen, including consultant Miyo Yamashita who allegedly billed $300/hr for allegedly consulting with herself. Yamashita’s husband Michael Guerrire is a partner at Courtyard Group, who also benefited by receiving three contracts for $2 million. A third communications contract was handed to Emerge Communications worth $192 thousand that allegedly duplicates the one granted Anzen.
Other consultants billed for smaller items including cups of tea and coffee to reading articles out of the New York Times.
Sarah Kramer’s $114 Thousand Bonus, Opposition Reaction
Sarah Cramer came into question after it was revealed she gave herself a $114 thousand after four months on the job. She was fired Sunday June 7, and given a severance package of $317 thousand- the equivalent of 10 months salary. According to Health Minister David Caplan, she was fired because of a request from eHealth's board that the spending scandal was distracting them from their mandate.
As expected the opposition at Queen’s Park is furious. NDP (New Democratic Party) thinks it was wrong to give Cramer a severance package. In remarks published on cbc.ca, party Health Critic accused the Liberals of using tax dollars to make the problem go away: “Does he fire her because he has just cause to do this? Not at all. He buys her to go away using taxpayers money.”
The Progressive Conservatives (PC’s) fear problems at eHealth go beyond the CEO. The party’s Interim leader Bob Runciman wants an investigation into untendered contracts totaling $5.5 million, including those awarded by Cramer. In remarks published on cbc.ca, Runciman says he doesn’t think those in charge can oversee themselves: “I’ve described them as an incestuous little gang, and there’s no way they can hold each other accountable.”
Health Minister David Caplan denies opposition calls for his resignation. But the minister is demanding more information. According to remarks published by Canadian Press, his spokesman says the minister’s concern is growing: “The minister is very concerned about some of the information that has surfaced regarding eHealth and I think it’s safe to say his concern grows daily.”
The Liberals have asked the auditor general to look into the scandal. Deputy Health Minister Ron Sapsford replaces Sarah Kramer as CEO.
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